Pinterest Stock Prospects Based on Former Googler’s Buying Plans — Info | Jobs Reply

What a difference a year makes. At the beginning of 2022, Pinterest was outside with investors. Plagued by reports that executives are on the run, as well as falling user numbers, its stock has been trading at a deep discount to that of Snap, a similarly sized social media app that in the past few years has shown rapid revenue growth. Today, the tables have turned.

Snap’s stock is now trading below Pinterest’s expected earnings for next year, the first time that’s been true since 2019, when Pinterest went public, according to Koyfin data. While investors lost faith in Snap due to its slowing revenue growth, Pinterest halted a year-long slide in user growth and shook up its top management with the appointment of former Googler Bill Ready as CEO. The appearance of Elliott Management as a shareholder—with a board seat—boosted investor confidence.

Don’t be fooled though. This situation is more about Snap’s fall from grace than any change at Pinterest. Whether Ready and Elliott can attract more advertisers to Pinterest and spark its growth is uncertain. And while Pinterest stock recently traded as high as $26, making it one of the best-performing tech stocks this year, it could fall to around $16 if Ready fails, assuming it trades in line with where Snap and Meta Platforms are now trading, Info count.

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